Stock Name: KS Energy
Company Name: KS ENERGY LIMITED
OCBC Investment Research in a Nov 11 research report says: "KSE reported a 28.1% y-o-y rise in revenue to $132.4 million and a net loss of $11.5 million in 3Q11. Gross profit margin was lower at 22.7% in 3Q11 compared to 25.7% in both 2Q10 and 3Q10.
"After taking into account distribution costs, administrative and other expenses, the group was in negative territory at the operating level ($5.5 million loss), indicating that 2Q11's operating profit of $146k was but a fleeting moment of positive results after four consecutive quarters of dismal earnings.
"We have adjusted our earnings estimates to account for the bleaker outlook, but given limited earnings visibility, we are still not ready to revert to P/E based valuation for the stock. KSE has been trading at a historical average of 1.25x P/B, and based on 1.15x FY12F NTA, we maintain our fair value estimate of 91 cents. MAINTAIN HOLD."
Company Name: KS ENERGY LIMITED
| Research House: OCBC | Price Call: HOLD | Target Price: 0.91 |
OCBC Investment Research in a Nov 11 research report says: "KSE reported a 28.1% y-o-y rise in revenue to $132.4 million and a net loss of $11.5 million in 3Q11. Gross profit margin was lower at 22.7% in 3Q11 compared to 25.7% in both 2Q10 and 3Q10.
"After taking into account distribution costs, administrative and other expenses, the group was in negative territory at the operating level ($5.5 million loss), indicating that 2Q11's operating profit of $146k was but a fleeting moment of positive results after four consecutive quarters of dismal earnings.
"We have adjusted our earnings estimates to account for the bleaker outlook, but given limited earnings visibility, we are still not ready to revert to P/E based valuation for the stock. KSE has been trading at a historical average of 1.25x P/B, and based on 1.15x FY12F NTA, we maintain our fair value estimate of 91 cents. MAINTAIN HOLD."
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